It seems shortly after a Chinese car manufacturer begin to sell and put their vehicles onto the market they will soon set up an IPO. Even with intense changes in stock prices lately, an IPO is an easy way to begin funding eventual growth and make early investors happy with their choices.
In September, NIO, a four-year-old Chinese EV startup debuted on the New York Stock Exchange, when it had delivered 481 cars. Recently, having delivered a total of 24 units of its $30,000 Xpeng G3 compact electric SUV to customers, Xiaopeng Motors, another Chinese Tesla-inspired EV startup, also appears to be thinking ahead to an IPO.
Brian Gu, the company’s vice-president, said recently at a media briefing that the company is looking at an IPO, although there’s no specific timeline yet. “There are a few aspects to consider to an IPO, including the company’s needs, financing, business development, and brand effect… We will be watching how the market reacts to new carmakers, and we hope to have a good market value when listing. There are new developments in the science and technology board [of the Shanghai stock market], which are very good for companies like us… IPO will come naturally, but there’s no time set yet.”
In August, He Xiaopeng, founder of the firm, said in a press conference the firm had no immediate plans for an IPO, at least not until after 2020.
Founded in 2014, Xiaopeng has attracted some high-profile investors like e-commerce giant Alibaba and iPhone maker Foxconn. The EV maker has a market valuation of $3.6 billion, even though the company has only just started to deliver its flagship car.
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